Two marketing bosses disqualified for total of 12 years after causing their company to pay more than ?830,000 to businesses they had connections with.
With offices in London and Sheffield, White Space Communications Ltd was incorporated in September 2000, providing web design and marketing services.
Jeffrey Alexander Roberts (65) and Anthony John Samuel Barry (56) were both appointed directors of the agency in 2013.
Two years after their appointment, however, the company went into administration in April 2015 and just under a year later, entered into liquidation in January 2016 owing at least ?364,000 to creditors.
This triggered an investigation into the company?s affairs by the Insolvency Service and investigators found that from May 2014, the two directors caused or allowed White Space to make ?831,000 worth of payments or loans to companies they had connections with.
The directors failed to provide any explanation or valid commercial reason to investigators for the loans and the monies paid were unrecoverable, which meant creditors who were owed money in the liquidation lost out.
Jeffrey Roberts and Anthony Barry have now given disqualification undertakings to the Secretary of State for Business, Energy & Industrial Strategy having accepted they breached their fiduciary duties.
The bans prevent them from becoming directly or indirectly involved in the promotion, formation or management of a company for six years. Jeffrey?s disqualification was made effective from 6 November 2018, while Anthony Barry?s ban came into affect on 19 November 2018.
Martin Gitner, Deputy Head, Insolvent Investigations, part of the Insolvency Service said:
The Insolvency Service will not hesitate to investigate and seek to disqualify directors who have caused a company to loan or pay monies to connected parties rather than to the benefit of either the company or its creditors.